USD to PKR for business payments
A foreign business paying a supplier in Pakistan normally pays in US dollars by SWIFT to the supplier's IBAN, and the supplier's bank converts most of the proceeds into Pakistani rupees (PKR) under State Bank of Pakistan rules. Paying in rupees from abroad is possible only through a limited set of routes, so the practical question is less about converting yourself and more about getting the dollar payment right.
- Under Chapter 12 of the State Bank of Pakistan (SBP) Foreign Exchange Manual, export proceeds must be received within 120 days from shipment, or by the due date if that is earlier, through an authorized dealer bank.
- Proceeds must arrive in a convertible currency in which the authorized dealer holds accounts, or in rupees from a repatriable non-resident rupee account.
- Most proceeds are converted to rupees; services exporters may keep 35% of net foreign exchange earnings in foreign currency, and software, IT and freelance exporters $5,000 a month or 50%, whichever is higher.
- A Pakistani IBAN has 24 characters: PK, two check digits, a four-character bank code and a 16-digit account number, and Pakistani banks have used IBAN for payments since 30 June 2013.
- Bank AL Habib's July to December 2026 schedule lists no charge for inward foreign remittances, but intermediary banks can deduct fees unless the wire is sent with OUR charges.
The Pakistani rupee at a glance
The Pakistani rupee (PKR) is issued by the State Bank of Pakistan (SBP), the central bank, which sets the foreign exchange rules in its Foreign Exchange Manual. Foreign exchange business runs through authorized dealers, banks licensed by the SBP to handle foreign exchange. The rupee's rate against the dollar changes daily, and Pakistani banks quote their own buying rate when they convert export proceeds.
| Item | Pakistani rupee |
|---|---|
| Currency code | PKR |
| Issuer and regulator | State Bank of Pakistan, Foreign Exchange Manual |
| Export realization | 120 days from shipment, or the due date if earlier; 45 days for sight and cash against documents |
| Currency of proceeds | A convertible currency the authorized dealer holds, or rupees from a repatriable non-resident rupee account |
| Conversion | Most proceeds converted to rupees; set shares may be retained in foreign currency |
| Account format | IBAN, 24 characters, starting PK |
Sources: SBP Foreign Exchange Manual, Chapter 12; Citibank Pakistan, IBAN FAQs. Checked on 29 October 2026.
Pakistani rules on export proceeds
Pakistan's rules are built around the supplier receiving dollars through its own bank and converting most of them. Chapter 12 of the SBP Foreign Exchange Manual covers exports.
- The account is declared before shipment. The exporter declares the bank account through which the proceeds will arrive when it files the export declaration on Pakistan Single Window (PSW), the government's online platform for trade declarations, and the authorized dealer links the shipment to that account electronically. Pay the account named for the shipment, not another account the supplier happens to hold.
- The clock runs from shipment. Proceeds must be received within 120 days from the date of shipment, or by the payment due date if earlier. Sight, documents against payment and cash against documents exports must be paid within 45 days. Authorized dealers may extend the period where the buyer's documents support the delay.
- Advance payments need a contract. For an advance, the bank needs a copy of the firm contract, purchase order, proforma invoice or indent, and shipment must take place within one year of receipt.
- Retention is limited. The supplier may hold proceeds for 3 working days in a Special Exporters' Account before conversion. Services exporters may keep 35% of net foreign exchange earnings in foreign currency, and software, IT, IT enabled services and freelance exporters may keep $5,000 a month or 50% of proceeds, whichever is higher.
See our Pakistan country guide for the supplier's full process.
How a payment reaches a Pakistani supplier
Every Pakistani bank account has an IBAN, the International Bank Account Number. The SBP adopted the IBAN standard in 2012, and Pakistani banks have used it for payments since 30 June 2013. Citibank's published example is PK36CITI1000001004331059. Your bank sends the wire over SWIFT, and the dollars settle in the United States on Fedwire through the Pakistani bank's correspondent before reaching Pakistan.
| Detail | What to use | Common mistake |
|---|---|---|
| Beneficiary name | Supplier's registered name, exactly as on the account | Trading name or a director's name |
| Beneficiary IBAN | 24 characters, starting PK, no spaces | The old account number without IBAN |
| SWIFT code | 8 or 11 characters, from the supplier's bank | A branch code instead of the SWIFT code |
| Intermediary bank | The US correspondent the supplier's bank names | Leaving it blank when the bank asks for it |
| Reference | Invoice number and any export reference the bank asks for | No reference, so the bank cannot match the payment |
| Charges code | OUR, so the full amount arrives | SHA, leaving the invoice short |
Sources: Citibank Pakistan, IBAN FAQs; SBP Foreign Exchange Manual, Chapter 12. Checked on 29 October 2026.
Paying in rupees from abroad is limited. Wise, for example, states that it can send PKR only to personal accounts in Pakistan and is currently unable to send business payments in PKR. Check the bank's code with our SWIFT code lookup.
What converting USD to PKR costs
When you pay dollars, the conversion to rupees happens at the supplier's bank, at the bank's buying rate on the day the proceeds arrive. That rate is made of the market rate plus the bank's margin. Your costs are the fee for sending the wire and any intermediary deductions. Bank AL Habib's schedule for July to December 2026 lists no charge for inward foreign remittances, so the main leak on a dollar payment is correspondent deductions on a wire sent with shared charges. Send with OUR charges when the supplier must receive the full invoice amount.
If a provider offers to pay rupees for you, the same three parts apply: the mid-market rate, the provider's margin and its fee. Check that the route reaches a business account and that the supplier can match it to its export.
Helm is a financial technology company, not a bank. Its US dollar account services are provided by Bridge Building, Inc. (NMLS ID 2450917), a licensed money transmitter, with customer funds held at Lead Bank. A Helm account holds dollars in your company's own name and sends international payments to suppliers by SWIFT, or by local rails in the supplier's currency where available, with the rate, fee and expected arrival shown before you send. Helm cannot currently provide USD account details to companies based in Pakistan; the account described here is for the foreign business that pays the Pakistani supplier.
Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment. See how Helm pricing works.
Pay a Pakistani supplier in USD or PKR?
- Pay USD for goods and services exports. The SBP rules are built around proceeds arriving in a convertible currency through the authorized dealer, matched to the export. Expect the invoice in dollars.
- Use PKR only for local costs, through a route that reaches a business account, and only after asking the supplier. A rupee payment that does not come through the authorized dealer does not realize the export.
- Pay on time. A payment after 120 days puts the supplier outside the realization period unless its bank extends it.
The full corridor guide is how to pay suppliers in Pakistan.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
Can I pay a Pakistani supplier in rupees?
It is limited. SBP rules expect export proceeds in a convertible currency through the authorized dealer, or rupees from a repatriable non-resident rupee account, and Wise states it cannot currently send business payments in PKR. Most buyers pay in US dollars.
How long does a Pakistani exporter have to receive payment?
Under Chapter 12 of the SBP Foreign Exchange Manual, export proceeds must be received within 120 days from shipment, or by the due date if earlier. Sight, documents against payment and cash against documents exports must be paid within 45 days.
How long is a Pakistani IBAN?
A Pakistani IBAN has 24 characters: PK, two check digits, a four-character bank code and a 16-digit account number. Write it as one continuous string with no spaces.
Does a Pakistani supplier have to convert my dollars?
Mostly. Proceeds may be held for 3 working days before conversion, services exporters may keep 35% of net earnings in foreign currency, and software, IT and freelance exporters $5,000 a month or 50%, whichever is higher.
What does a Pakistani bank charge to receive a wire?
Each bank sets its own schedule. Bank AL Habib's July to December 2026 schedule lists no charge for inward foreign remittances, but intermediary banks can deduct fees unless the wire is sent with OUR charges.
Can Helm pay a supplier in Pakistan?
Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment. Helm cannot currently provide USD account details to companies based in Pakistan.
References
- State Bank of Pakistan: Foreign Exchange Manual, Chapter 12 (Exports)
- State Bank of Pakistan: EPD Circular Letter No. 17 of 2023, export of software, IT, ITeS and freelance services
- State Bank of Pakistan: EPD Circular Letter No. 02 of 2021, Exporters' Special Foreign Currency Accounts
- Citibank Pakistan: IBAN frequently asked questions
- Bank AL Habib: Schedule of Bank Charges, July to December 2026
- Wise: What currencies can I send to and from?
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.